chapter 7: March 2009 Archives

Home Decor Products ceases operations

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Online retailer Home Decor Products is closing all nine of its businesses. The company filed for Chapter 7 bankruptcy Thursday and has begun liquidating assets. Home Decor, which had more than $83 million in sales last year, considered but rejected a Chapter 11 filing that would have kept the business operational.

Home Decor Products' sites, including,,,, are not accepting orders, and the sites have a variety of messages posted on them, from goodbyes to "temporarily for browsing only" announcements. The corporate web site at has been taken offline.

This is a strange one. Dial-a-Mattress, infamous for their late-night commercials, saw sales fall to $100 million, from $170 million two years ago, and now:

Creditors filed an involuntary Chapter 7 bankruptcy petition against Dial-a-Mattress last week, seeking $1.7 million. The company is seeking to convert that to a Chapter 11 reorganization.

Sleepy's said in a statement on Tuesday that it would provide debtor-in-possession financing to help Dial-a-Mattress operate. The financing is subject to bankruptcy court approval.

The company, somehow, only has assets of $9.37 million--and owes more than that.

Meadowbrook Farms, a cooperative of more than 200 family hog farm members who used a central processing plant in Illinois, has filed for chapter 7 bankruptcy. The cooperative owed its members money, having had a cash crunch shortfall because of a large default by a purchaser.

Dial-A-Mattress in battle

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Dial-A-Mattress, the well-known mattress retailer who owns 1-800-MATTRESS and, has had an involuntary Chapter 7 bankruptcy motion filed against it by three of its creditors. The trio are reportedly angry that is not paying its bills. Just last week Dial-A-Mattress announced a plan to be sold to a business entity called Dial Mattress Acquisition LLC, which promised a "swift" injection of cash to keep the company running.

The bankruptcy filing does not affect franchisees throughout New England, who noted business continues as usual at their stores.

Timely Demise tracks the retail industry as it changes with our unprecedented economic environment. Published by David Wertheimer. Did I miss something? Drop me a line.

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This page is a archive of entries in the chapter 7 category from March 2009.

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